Parkway Properties Inc. (NYSE: PKY) purchased a stake in a joint venture that owns a portfolio of five office properties in Austin, Texas for roughly $41.5 million.

The Orlando, Fla.-based real estate firm was required to buy the stake once it completed a $1.2 billion merger with Thomas Properties Group Inc. in December. The JV was held between Thomas Properties and private equity firm Madison International Realty. As a result of the merger, Madison had the right to require that Parkway purchase a stake of about 17 percent in the CalSTRS JV. New York-based Madison exercised this right on Dec. 26.

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